Before you try to buy a house, the single-most important thing you can do is get your credit score optimized to the highest number you can attain. How long should you take to do it? According to one expert: as long as it takes. If you are looking to buy a house? Work on this for at least 8 months before you begin actively trying to search for and buy a home.

raise your credit score from 620 to 800 and save 126k

Should you be shooting for 800? Sure, but few ever make it to the summit. Just do what you can, and here are 4 ways you might not have tried.

1. Ask for higher credit limits
We know that 30 percent of the FICO scoring formula comes from the “amounts owed” category. This has less to do with the actual dollar amounts you owe than it does with the amounts you owe on revolving accounts relative to your credit limits, and how much you owe on installment loans relative to their original balances.
When it comes to reducing your revolving account usage (also known as your credit utilization), there are two options. Most obviously, you could pay down your debts. Alternatively, you can get more available credit. Both can have the same effect.
Think of it this way. If you owe $2,000 on your credit cards and have credit limits totaling $5,000, you are using 40 percent of your available credit. On the other hand, if you have $10,000 in credit limits, your utilization drops to just 20 percent even though you owe the same amount of money.

This can have a dramatic effect on your credit score, so one strategy is to simply ask your current creditors to increase your limits. Most people who do this are successful, and you’ll get the benefit of lower credit utilization without the negative effects that come with applying for and opening new credit accounts.

2. Get Experian to start tracking your successful monthly cell phone payments and other smaller bill payments

Are you looking to boost your credit score but don’t have enough credit history to do so?

If so, you may be in luck. Consumers can now use monthly utility, cellphone, and cable bills to give their credit scores an extra boost.

Experian, one of the top three credit rating agencies, has launched Experian Boost. Consumers that sign up gives the credit rating agency access to their bank account, to find monthly bill payments made on time.

3. Pay your cards off, but don’t close any accounts.

Often, those with a good stable job can get a personal loan at a LOWER interest rate than the cards offer. Get a personal loan to consolidate your debts, from a credit union.

tips to boost your credit score


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